Last Updated on February 4, 2025 by IPO Manthan Team
Gold prices today in India drop on February 4, 2025, while global prices remained stable. In major cities like Delhi, Mumbai, Chennai, and Bangalore, both 24K and 22K gold rates dropped. The reduction is attributed to multiple factors, including changes in import duties, global economic conditions, and fluctuations in the US dollar.
Gold Prices Today in India Drops Slightly
In Delhi, 24K gold is now priced at ₹84,213 per 10 grams, down by ₹440, while 22K gold stands at ₹77,213, marking a ₹400 decline. Chennai also recorded a dip, with 24K gold now at ₹84,061, compared to the previous ₹84,511. The 22K rate in Chennai is ₹77,061. Meanwhile, Mumbai saw a minor decline, with 24K gold priced at ₹84,040 per 10 grams and 22K gold at ₹77,040. Bangalore’s gold prices today in India are ₹84,055 for 24K and ₹77,055 for 22K.
Globally, gold futures are steady at $2,842.30 per ounce as of early February 4. The international gold market is being shaped by economic trends, particularly US interest rate policies and investor sentiment. The drop in gold prices today in India is closely linked to these global influences, alongside domestic changes.
One of the biggest reasons for this price dip is the Indian government’s decision to slash import duties on gold from 15% to 6%. This move aims to curb gold smuggling and make the metal more affordable. Since the announcement, gold prices today in India have dropped significantly, with estimates suggesting a reduction of ₹5,000-6,000 per 10 grams.
Another contributing factor is the strength of the US dollar. Gold is priced in US dollars, so when the dollar gains strength, it becomes costlier for buyers using other currencies, including the Indian rupee. On February 3, the dollar index saw a notable rebound, which reduced gold’s appeal as an inflation hedge and impacted demand.
Additionally, the decline in gold prices today in India is part of a natural market correction. In the days leading up to February 4, gold prices reached record highs, prompting investors to book profits. As a result, the market is now adjusting after consecutive days of gains.
Economic conditions worldwide have also played a role. Investors are closely watching the US Federal Reserve’s decisions on interest rates, as changes in borrowing costs impact gold’s attractiveness as an investment. Any indication of higher interest rates usually dampens gold demand, leading to price corrections.
The fluctuations in gold prices today in India highlight how interconnected the domestic and global markets are. With import duty cuts, a strong dollar, and global economic shifts at play, gold buyers and investors must stay updated on trends. Whether prices will continue to decline or stabilize in the coming days will depend on how these factors evolve.
For now, gold prices today in India drops compared to previous highs, making it a crucial time for buyers to analyze market conditions before making purchasing decisions.